Seizert Capital Partners' Steady Eddie Play: Another $15 Million Bet on LKQ

Seizert Capital Partners has again demonstrated its conviction in LKQ Corporation, the automotive replacement parts distributor, by deploying another $15.20 million to expand its holding during the fourth quarter. This latest purchase—adding 503,998 shares to an already substantial position—underscores why some institutional investors view LKQ as a steady eddie investment in an increasingly uncertain automotive landscape. The move brings Seizert’s total LKQ stake to 2,178,703 shares valued at $65.80 million as of December 31, 2025, according to an SEC filing dated February 2, 2026.

Seven Consecutive Quarters of Accumulation Signals Conviction

What makes Seizert’s latest move particularly noteworthy is the consistency behind it. The fund has been steadily building its LKQ position for seven straight quarters, even as the stock declined from roughly $50 per share to the current $32.52 level—a 35% slide that might alarm most investors but appears to have triggered the opposite reaction from Seizert’s portfolio managers.

This quarter-end, the LKQ stake grew by $14.65 million in total value, a figure that reflects both the newly acquired shares and the underlying price movement of the stock. While the position now represents just 2.78% of Seizert’s 13F reportable assets under management, placing it outside the fund’s top five holdings, the methodical accumulation pattern suggests management sees genuine value in the company’s fundamentals despite near-term headwinds.

Attractive Valuation Meets Steady Capital Returns

At 1.3 times book value and a mere 12 times free cash flow, LKQ presents a compelling entry point for value-oriented investors. The company’s dividend yield has climbed to a hefty 3.63%, providing steady income alongside potential price appreciation. But here’s where the steady eddie characterization truly applies: LKQ has evolved from a growth story into a capital return machine.

Over the past five years, management has executed a disciplined buyback program that has reduced the share count by 3.6% annually. Combined with the growing dividend, these capital return programs mean shareholders benefit from two fronts—share price appreciation potential plus regular income. The company’s revenue stands at $13.96 billion (trailing twelve months), with net income of $697 million, generating the cash flow needed to sustain both buybacks and dividend growth.

LKQ distributes replacement parts, components, and systems across North America and Europe, serving collision and mechanical repair shops, dealerships, and retail consumers. This diversified distribution network and focus on aftermarket and recycled parts has positioned the company as the dominant player in its niche, generating consistent revenue streams that support predictable capital returns.

The Autonomous Vehicle Wildcard

Yet for all the appeal of a steady eddie with an attractive valuation, LKQ faces a looming question that could reshape its long-term trajectory: the rise of autonomous vehicles. The company’s sales growth has already begun to decelerate, slowing from an 8% annual average over the past decade to just 3% in 2025. While this still outpaces the broader market, the writing on the wall is difficult to ignore.

In a world where autonomous vehicles become ubiquitous—particularly in urban centers across the U.S. and Europe—demand for collision repair parts could plummet. Fewer accidents would mean fewer replacements. That said, the transition will likely take years to fully materialize, and certain challenges (like autonomous vehicles mastering winter driving conditions) may ensure a continued role for replacement parts in many markets for the foreseeable future.

Balancing Value with Uncertainty

At current valuations, LKQ doesn’t require explosive growth to justify its stock price, which works in favor of continued accumulation like Seizert’s latest purchase. If the company successfully carves out a sustainable position in the post-autonomous vehicle era—even if scaled down from today’s addressable market—the steady dividend and buyback program could deliver attractive returns for patient investors.

Seizert’s seven consecutive quarters of buying LKQ shares suggest the fund sees the risk-reward balance tilting toward opportunity. For investors considering LKQ as a steady eddie holding with both income and modest capital appreciation potential, Seizert’s conviction buying provides supporting evidence that value-conscious managers still see merit in this traditional automotive aftermarket leader.